AMENDMENT NO.1 TO CONTRACT BETWEEN CHINA AIR LINES AND AIR AMERICA, INC. (CONTR

Created: 9/27/1967

OCR scan of the original document, errors are possible

AMENDMENT HO. o

CONTRACT BETWEEN CHINA AIR LINES and

AIR AMERICA, INC.

6ateds hereby amended as follows: 1. 7 delete paragraphsnd m. Article V. and substitute therefor the following:

1. Price Reduction for Defective Cost orau

If any price, including profit or fee negotiated in connection with this contract or any cost reimbursable under this contract was increased by any significant sums because CAL, or any subcontractor pursuant to the clause of this contract entitled "Subcontractor Cost or Pricing Data" or "Subcontractor Cost or Pricing Data-Price Adjustments" or any subcontract clause therein required, furnished incomplete or inaccurate cost or pricing data, then such price or cost shall be reduced by the amount of reduction, if any, by which the Government reduces the price or cost of the prime contract and the contract shall be modified in writing as may be necessary to reflect such reduction.

ra.

1. For purposes of verifying that certified cost or pricing data submitted, in conjunction with the negotiation of this contract or any contract change or other modification involving an amount in excessere accurate, complete, and current, the Contracting Officer of the, prime contractsr.cn zed representatives, ntil tne expiration or throe years from the date of final.

f

ayWiuhis contract-have the right to examine those bcks'. records, documents, papers, and other supnort-inq. data whicn involve transactions related to this contract

or which will permit adequate evaluation of the cost or pricing data submitted, along with the computations and projections used therein, provided that, in the case of any contract change or modification, such change or modification resultshange or otherto the Government prime contract.

2. CAL agrees to insert this clause including this

n all subcontracts hereunder which when entered into exceedOO, unless the price is based on adequate price competition, established catalog or market prices of commercial items sold in substantial quantities to the ger.eral public, or prices set by law or regulation. In each such excepted subcontract hereunder, which when entered intoAL shall insert the following clause.

"Audit-Price Adjustments

clause shall become operative onlyto any change or other modificationcontract whichriceexcess0 unless the pricebased on adeqaute price competition,or market prices of commercial itemssubstantial quantities to the general public,set by law or regulation, provided,change or other modification tohange or other modification to

the Government prime contract.

purposes of verifying that certified costdata submitted in conjunction withcontract change or modification wereand current, the Contractingthe Government Prime contract orrepresentative shall-untilof three years from the finalpayment under this contract-have the right

to examine the books, records, documents, papers and other supporting data which involve transactions related to this contract

the cost or pricing data submitted, along with the computations and projections used therein,

he Subcontractor agrees to insert this clause, including this paragraphn all subcontracts hereunder which*when entered into"

AMERICA, INC.

AIR LINES

W. Walker, jr.

Yoh

President Title Flyinq Contract Affairs

President

Date

8

8

Original document.

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